Pioneer Crossing - Arlington, TX

PIONEER CROSSING ARLINGTON, TX

PRICING & FINANCIAL ANALYSIS

PIONEER CROSSING

FINANCIAL ANALYSIS

Pioneer Crossing 2540 Pioneer Parkway Arlington, TX 76010

Offering Summary Price Cap Rate Net Operating Income

$10,000,000 7.16% $715,702

Price PSF

$6.76

Occupancy

100% 1993/2004

Gross Leasable Area

105,832 SF

Lot Size

9.47 Acres

PROPERTY DESCRIPTION

Year Built/Year Renovated

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

2

PRICING & FINANCIAL ANALYSIS

PIONEER CROSSING

PSF

Expenses

Base Rent

$715,702

$6.76

Real Estate Taxes

Real Estate Tax Reimb.

$176,325

$1.67

Insurance

Insurance Reimb.

$15,282

$0.14

CAM Reimb.

$84,927

$0.80

Mgmt./Admin. Fee Reimb.

$42,888

$0.41

Total Exp. Reimbursements

$319,422

$3.02

EFFECTIVE GROSS REVENUE

$1,035,124

$9.78

$176,325

$1.67

Insurance

$15,282

$0.41

CAM

$84,927

$0.80

$42,888

$0.41

$319,422

$3.02

$715,702

$6.76

Real Estate Taxes

Mgmt. Fee (% of GPI) Total Expenses

NET OPERATING INCOME

4.00%

PSF

$176,325

$1.67

$15,282

$0.14

Administration

$27

$0.00

Building Maintenance

$195

$0.00

Cleaning

$162

$0.00

$6,397

$0.06

$303

$0.00

$2,740

$0.03

$231

$0.00

$1,257

$0.01

$97

$0.00

Landscaping - Exterior

$19,060

$0.18

Lighting R and M

$9,284

$0.09

Management Payroll

$1,622

$0.02

Parking Lot Repairs

$4,390

$0.04

$95

$0.00

Power Washing

$1,061

$0.01

Professional Fees

$458

$0.00

Roof Repairs

$633

$0.01

$2,972

$0.03

$634

$0.01

Utilities - Gas and Electric

$15,806

$0.15

Utilities - Water and Drainage

$17,502

$0.17

$84,927

$0.80

$42,888

$0.41

$319,422

$3.02

CAM

Day Porter Exterior R and M Fire Life and Safety Grounds Maintenance HVAC Interior R and M

Pest Control

Telephone Services

Total CAM Management Fee (% of GPI)

TOTAL EXPENSES

4.00%

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

MARKET OVERVIEW

Sweeping

PROPERTY DESCRIPTION

Expenses

Current

FINANCIAL ANALYSIS

Current

Income & Expenses

3

RENT ROLL

PIONEER CROSSING

% of Sq Ft

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Lease Type

Floor & Decor

82,532

77.98%

11/14

06/26

$519,952

$6.30

-

-

NNN

101

Dollar Tree

15,000

14.17%

06/15

05/20

$123,750

$8.25

-

-

NNN

190

Lam Automotive Shop

4,700

4.44%

08/07

07/27

$32,400

$6.89

08/22

$7.17

NNN

180

One Up Salon

3,600

3.40%

10/16

10/21

$39,600

$11.00

11/17

$11.00

NNN

11/18

$11.25

11/19

$12.25

11/20

$12.25

Tenant

100

Occupied Total

100.0%

0

0.0%

105,832

100.0%

$715,702

PROPERTY DESCRIPTION

Vacant

105,832

FINANCIAL ANALYSIS

Sq Ft

Suite

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

4

TENANT INFORMATION

PIONEER CROSSING

FINANCIAL ANALYSIS

Tenant overview Company Ownership

Public

Number of Locations

13,600+

Years In Business

21 Years

Headquarters Website

Chesapeake, VA www.dollartree.com

PROPERTY DESCRIPTION

Dollar Tree is the largest and most successful single-price-point retailer in North America. Additionally, in 2015, Dollar Tree acquired Family Dollar stores. Dollar Tree provides a variety of products for health & beauty, food, party and seasonal décor, houswares and much more.

Dollar Tree

Tenant overview Company Ownership Number of Locations Years In Business Headquarters Website

Private 70+

MARKET OVERVIEW

Floor & Decor is a leading specialty retailer in the hard surface flooring market, offering the broadest in-stock selection of tile, wood, stone, related tools and flooring accessories at every day low prices

Floor & Decor

17 Years Atlanta, GA www.flooranddecor.com

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

5

INVESTMENT HIGHLIGHTS

PIONEER CROSSING

FINANCIAL ANALYSIS

• Built-In Upside - More Than 81% Of The Current Tenant Line-Up Have Annual Rent Escalations Structured In Their Leases • Nearby Future Development- A 293,000 Square Foot IKEA Along SH 161 And Mayfield Road, New Walmart Supercenter Between Arkansas Lane and Pioneer Parkway

PROPERTY DESCRIPTION

• Outstanding Freeway Access- At Crossroads of State Highway 360 And Pioneer Parkway With Over 195,000 Vehicles Per Day • High Daytime Population- Of The “Top 10 Employers” in Arlington, There Are Three in the Top Five Within Five Miles Of Pioneer Crossing • Population-Dense Location - Three Mile Radius of The Property There Are 130,249 Residents Increasing To 362,938 Residents Within Five Miles • High Growth Trade Area- 9.85% Growth Within Five Miles

MARKET OVERVIEW

• Population Base Has Average Annual Incomes of $59,840 Within a Five Mile Radius

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

6

SITE PLAN

PIONEER CROSSING

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

7

AERIAL MAP

PIONEER CROSSING

FINANCIAL ANALYSIS

way

ark er P

e

Pion

Sam Houston High School

Hwy 360

PROPERTY DESCRIPTION

Arkansas Lane

Lincoln College of Technology Grand Prairie Municipal Airport

MARKET OVERVIEW

Mayfield Road

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

8

LOCAL MAP

PIONEER CROSSING

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

9

REGIONAL MAP

PIONEER CROSSING

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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LEASE COMPARABLES

GLA

Yr Built/ Renovated Occupancy

Major Tenants

Available SF

Rental Rates

NNN

1993/2004

100.0%

Floor & Décor, Dollar Tree, Lam Automotive Shop, One Up Salon

0

$6.30-$11.00

$3.02

1

The Corners 2903 E. Arkansas Lane

30,000

1986

100.0%

Liquor Depot Express, Sherwin Williams, Ikura Sushi Bar, Alliance, BPI Temp Service,

0

$7.00-$12.00

$2.14

2

Arkansas Court 2501-2535 E Arkansas Lane

114,716

1986 / 2004

98.3%

Dollar General, Chase Bank, Subway, Liberty Tax, Pho 95

2,000

$10.00 - $13.00

$5.25

3

High Park Village 2520- 2596 E. Arkansas Lane

93,730

1984

99.0%

Kroger (shadow), Rainbow, Rent-a-Center, MetroPCS, CiCi's Pizza, Chapp's Cafe

955

$9.00 - $12.00

$5.31

4

New York Park Plaza 1901-1929 E. Park Row Drive

93,799

1965

100.0%

El Rancho, Family Dollar, Thrift Mart

0

$9.00 - $15.00

$3.15

5

Pioneer Village 701-819 E. Pioneer Parkway

54,656

1971

100.0%

Planet Fitness, Aaron's Rents, Wash World, Bright Cleaners, Pho Palace

0

$5.50 - $24.00

$3.00

6

O'Reilly Auto Strip 629 W. Pioneer Parkway

19,840

1970 / 2000

100.0%

O'Reilly Auto Parts, Pancho Taco, La Familia Insurance, Cashmax

0

$7.50-$22.00

$3.25

Emerald Square 7 2985 State Highway 360 Grand Prairie

148,657

1987

100.0%

OctaPharma, Flow Fitness, GED's Floor Store, Winfree Academy

0

$6.00-$17.00

$2.18

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

MARKET OVERVIEW

105,832

PROPERTY DESCRIPTION

Pioneer Crossing  2450 E. Pioneer Parkway Arlington, TX

FINANCIAL ANALYSIS

Property

PIONEER CROSSING

11

LEASE COMPARABLES

PIONEER CROSSING

FINANCIAL ANALYSIS

Pioneer Crossing 1

The Corners

2

Arkansas Court

3

High Park Village

4

New York Park Plaza

5

Pioneer Village

6

O’Reilly Auto Strip

7

Emerald Square

6

5

2 3

PROPERTY DESCRIPTION

4

1

7 MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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MARKET SUMMARY

PIONEER CROSSING

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

ARLINGTON, TX Arlington is located in Tarrant County, which is situated in the middle of the Dallas-Fort Worth Metroplex. Arlington is the seventh-most populous city in Texas and is among the top 50 largest cities in the United States by population. The city had a population of 379,577 according to a 2013 U.S. Census estimate and it is one of the fastest-growing cities in the nation, more than doubling in population between 1980 and 2000. It is known as the “American Dream City”.

The top employers in Arlington are Texas Health Resources, Arlington Independent School District and the University of Texas at Arlington, a 30,000-student school with a prestigious engineering college. Major corporations like General Motors, JP Morgan Chase, GM Financial and National Semiconductor Water Plant also call Arlington home.

MARKET OVERVIEW

Arlington is also known as the Entertainment Capital of Texas because it is home to Texas Rangers’ Globe Life Park, the Dallas Cowboys at AT&T Stadium, Six Flags Over Texas theme park, Hurricane Harbor water park, and the International Bowling Campus. The Dallas Cowboys’ $1 billion AT&T Stadium Complex also home to the Cotton Bowl Classic and hosts other activities such as concerts, basketball games, college and high school events, soccer matches, motorcross and Spartan races. Arlington’s 95 parks, including the 1,300 acre River Legacy, and it’s convenient

access to the Dallas-Fort Worth Metroplex, make it a world class city. In 2017, the Arlington Parks and Recreation department was named a finalist for the National Gold Medal Award for Excellence in Park and Recreation Management.

Arlington also has a wide range of cultural amenities, and it is within the larger metropolitan Dallas-Ft. Worth area. Well known symphonies and ballets are common in the city. The city has many fine museums, such as the Arlington Museum of Art, the Fielder House, the Center for Research and Contemporary Art, and UTA Special Collections.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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DEMOGRAPHIC STATISTICS

1 Mile

3 Mile

5 Mile

26,529 24,555 21,852 8.04% 12.37% 13,551

139,933 130,249 119,464 7.43% 9.03% 64,394

388,803 362,938 335,567 7.13% 8.16% 150,768

15,782 5,970 326 1,852 68 557 0

84,967 30,184 1,760 10,098 283 2,957 20

243,930 78,272 4,373 27,303 677 8,383 165

9,186 8,512 7,632 7.92% 11.53% 1,825 6,687 $39,272 $31,463

46,069 42,871 39,296 7.46% 9.10% 18,074 24,797 $50,461 $40,110

137,331 128,053 117,873 7.25% 8.64% 62,500 65,553 $59,840 $45,928

3,414 2,641 1,475 676 140 91 76 2

13,138 12,763 8,644 4,331 1,775 1,026 872 321

33,604 35,536 24,606 14,699 8,546 4,441 4,092 2,529

FINANCIAL ANALYSIS

Radius

PIONEER CROSSING

Population: 2021 Projection 2016 Estimate 2010 Census Growth 2016-2021 Growth 2010-2016 2016 Population Hispanic Origin

2016 Population by Race:

PROPERTY DESCRIPTION

White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces

Households: 2021 Projection 2016 Estimate 2010 Census Growth 2016 - 2021 Growth 2010 - 2016 Owner Occupied Renter Occupied 2016 Avg Household Income 2016 Med Household Income

2016 Households by Household Inc:

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

MARKET OVERVIEW

<$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+

14

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential.

It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

Net Lease Disclaimer STRIVE hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

B

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain

the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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